SLOVAK REPUBLIC

History

The federal republic of Czechoslovakia consisted of two nations of equal rights: The Czech Republic (the Czech lands, previously Bohemia, Moravia and a part of Silesia), and the Slovak Republic (Slovakia). A law of 12 December 1990 defined the respective competences of the Czech and Slovak Republics and devolved most of former federal administrative and economic authority to them. Each Republic was governed by a National Council (the Czech with 200 deputies, the Slovak with 150), which delegated to an overall Federal Assembly responsibility for constitutional and foreign affairs, defence and important economic decisions. The Federal Assembly had two chambers which had equal status, and usually met in joint session: the Chamber of the People and the Chamber of the Nations. Both Chambers were elected by direct universal suffrage. Minimum age of voters is 18; of deputies 21 years. After centuries under foreign rule, mainly by Hungary, the Slovaks joined with their neighbours to form the new nation of Czechoslovakia in 1918. Following the chaos of World War II, Czechoslovakia became a communist nation within Soviet-ruled Eastern Europe. Soviet influence collapsed in 1989, and Czechoslovakia once more was an independent country turning toward the West. The Slovaks and the Czechs agreed to separate peacefully on 1 January 1993. Slovakia has experienced more difficulty than the Czech Republic in developing a modern market economy.

Economy

Slovakia, continuing the difficult transition from a centrally controlled economy to a modern market-oriented economy, began 1999 with clouds on the horizon: GDP growth was slowing sharply; budget and current account deficits were too large; external debt was growing uncomfortably fast; unemployment was high and rising; corrupt insider deals persisted; and demand was weakening for Slovakia’s key primary goods exports. The new government intends to address the economy’s ills by giving priority to joining the OECD and EU, cutting government wage and infrastructure spending, boosting some taxes and regulated prices, expanding privatisation to companies formerly considered strategic, restructuring the financial section, encouraging foreign investment, and re-energizing the social partnership with labour and employers. Government officials believe as long as two years may be needed before its structural reforms improve economic performance.